Using the Newton-Raphson algorithm, the DeBauch family takes out a mortgage of $100,050, to be repaid in 240
monthly installments of $900. What is the monthly interest rate?

Question

Using the Newton-Raphson algorithm, the DeBauch family takes out a mortgage of $100,050, to be repaid in 240
monthly installments of $900. What is the monthly interest rate?

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Newton Raphson is used for root finding

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When a loan of  P dollars is paid back with N equal periodic payments of R dollars at interest rate i per period, the equation relating P, N, R and i is becomes

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here is the formula http://www.vertex42.com/ExcelArticles/amortization-calculation.html

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A = payment Amount per period
    P = initial Principal (loan amount)
    r = interest rate per period
    n = total number of payments or periods

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